Those in their twenties think it is easier to wait on investments until they are stable financially. Even with low starting salaries and debts from college they are in a good position to begin investing.
Advantage of Time
Time and earnings can be reinvested to generate wealth through investing. Young adults have plenty of time even though money might be scarce. The return on even small investments is larger the more time the funds are invested.
The younger you are the more risks you can afford to take. The younger you are the more time you have to earn back any money that you lost investing.
Learn as You Go
Younger investors have time to learn by studying both the failures and successes of investing in addition to the basics as mentioned also by Chris Linkas. There is a learning curve to investing which gives those in their twenties an advantage. The younger the investor the more time available for studying the market and fine tuning the strategies used to invest. Mistakes in investing can be overcome easier because young adults have more time to recover from them.
The younger generation is more knowledgable about technology giving them the advantage of researching and implementing tools and techniques for online investing. There are endless opportunities for technical and fundamental analysis with online platforms for trading including educational websites and chat rooms. Young investors can increase their knowledge through social media while increasing the amount of confidence they have says Chris.
This is the current value of wages that will be received in the future. Investing in yourself is important because the ability to save and invest in retirement is a large part of earning ability. Gaining advanced skills, a degree or training on the job are all ways to make an investment in yourself. There are several opportunities for young adults to increase their earning capacity and taking advantage of them is a form of investment (https://www.cheynecapital.com/media/1501/creditflux_2014.pdf).
Retirement saving is not the single reason of investments that are well planned. There are a number of investments that can be used to provide a steady income throughout the investment’s life shared by Chris.